Macro Overview
U.S. stocks closed mixed on Wednesday after the Federal Reserve delivered its expected 25-basis-point rate cut, but Fed Chair Powell struck a hawkish tone, stating a December cut was “not a foregone conclusion.” This commentary pushed back on market easing expectations, sending the S&P 500 (IVV) to a flat finish at +0.05%. The session was marked by significant divergence; the tech-heavy Nasdaq rallied on semiconductor strength, while interest-rate sensitive and defensive sectors like Financials (XLF) (-1.70%) and Consumer Staples (XLP) (-2.36%) sold off.
U.S. Size & Style
The market’s divergence was clear across styles, with Large Growth (IVW) gaining +0.57%, buoyed by mega-cap tech. In contrast, Large Value (IVE) fell -0.57%. Small caps broadly underperformed, indicating a flight from risk outside of the largest names, with Small Growth (IJT) being the worst performer at -1.53%.
| Name (Ticker) | 1-Day % Change | WTD | 1 Month | 3 Month | YTD | 1 Year |
|---|---|---|---|---|---|---|
| Large Value (IVE) | -0.57% | -0.19% | 1.78% | 5.34% | 11.11% | 8.75% |
| Large Cap (IVV) | +0.05% | 1.50% | 3.59% | 8.52% | 18.42% | 19.68% |
| Large Growth (IVW) | +0.57% | 2.94% | 5.09% | 11.13% | 24.80% | 28.87% |
| Mid Value (IJJ) | -0.79% | -1.61% | -0.56% | 1.61% | 4.27% | 4.67% |
| Mid Cap (IJH) | -0.62% | -1.15% | 0.06% | 2.01% | 5.65% | 5.24% |
| Mid Growth (IJK) | -0.45% | -0.80% | 0.67% | 2.45% | 6.66% | 5.50% |
| Small Value (IJS) | -1.01% | -1.67% | 0.81% | 8.31% | 3.77% | 5.59% |
| Small Cap (IJR) | -1.30% | -1.86% | 0.26% | 6.22% | 4.27% | 4.84% |
| Small Growth (IJT) | -1.53% | -1.83% | -0.18% | 4.35% | 4.88% | 3.96% |
U.S. Sectors & Industries
Sector performance was a tale of two markets. Energy (XLE) (+0.74%) and Technology (XLK) (+0.72%) were the only sectors to post meaningful gains, with the Oil & Gas Equipment & Svcs (XES) industry surging +3.34%. The laggards were concentrated in rate-sensitive and defensive areas, with Real Estate (XLRE) (-2.73%) and Consumer Staples (XLP) (-2.36%) seeing the sharpest declines in reaction to the hawkish Fed tilt.
| Sector (Ticker) | 1-Day % Change | WTD | 1 Month | 3 Month | YTD | 1 Year |
|---|---|---|---|---|---|---|
| Energy (XLE) | +0.74% | -0.07% | -2.54% | -0.21% | 5.29% | 3.54% |
| Technology (XLK) | +0.72% | 3.59% | 8.49% | 15.31% | 31.40% | 31.17% |
| Industrials (XLI) | +0.26% | 0.11% | 1.33% | 1.94% | 18.90% | 16.09% |
| Utilities (XLU) | -0.03% | -1.41% | 3.49% | 7.24% | 21.51% | 16.97% |
| Communication Services (XLC) | -0.25% | 0.64% | -1.91% | 9.97% | 21.18% | 27.45% |
| Consumer Discretionary (XLY) | -0.83% | 0.63% | -0.67% | 6.66% | 7.29% | 20.44% |
| Health Care (XLV) | -1.01% | -1.40% | 5.95% | 7.59% | 6.04% | -1.25% |
| Financial (XLF) | -1.70% | -1.92% | -3.77% | -1.02% | 8.89% | 12.64% |
| Materials (XLB) | -1.96% | -1.88% | -2.06% | -3.23% | 5.31% | -5.37% |
| Consumer Staples (XLP) | -2.36% | -3.17% | -1.96% | -5.02% | -0.72% | -2.20% |
| Real Estate (XLRE) | -2.73% | -4.69% | -3.12% | -4.19% | 2.25% | -4.06% |
Global Thematic
Thematic strategies saw extreme divergence. Clean energy themes like the Global X Hydrogen ETF (HYDR) surged +6.94%. Conversely, high-growth tech themes that had run up recently faced sharp pullbacks, with the Global X Cybersecurity ETF (BUG) plummeting -5.54%.
| Name (Ticker) | 1-Day % Change |
|---|---|
| Global X Hydrogen ETF (HYDR) | +6.94% |
| Defiance AI & Power Infrastructure ETF (AIPO) | +3.38% |
| SPDR S&P Kensho Clean Power ETF (CNRG) | +3.10% |
| KraneShares Electric Vehicles & Future Mobility Index E.. (KARS) | +3.05% |
| ARK Autonomous Technology & Robotics ETF (ARKQ) | +2.89% |
| Global X FinTech ETF (FINX) | -3.73% |
| WisdomTree Cybersecurity Fund (WCBR) | -4.60% |
| iShares Cybersecurity & Tech ETF (IHAK) | -4.62% |
| Amplify Digital Payments ETF (IPAY) | -5.45% |
| Global X Cybersecurity ETF (BUG) | -5.54% |
Developed Markets ex-U.S.
Developed markets were broadly negative, with the benchmark Dev ex-U.S. (EFA) down -0.56%. The standout exception was South Korea (EWY), which rocketed +2.59%, likely participating in the global semiconductor rally. Australia (EWA) was a notable laggard, falling -1.89%.
| Country (Ticker) | 1-Day % Change | WTD | 1 Month | 3 Month | YTD | 1 Year |
|---|---|---|---|---|---|---|
| Dev ex-U.S. (EFA) | -0.56% | 0.08% | 2.29% | 6.74% | 27.97% | 22.25% |
| Australia (EWA) | -1.89% | -0.66% | 0.07% | 2.39% | 14.88% | 8.37% |
| Canada (EWC) | -1.28% | -0.18% | 0.57% | 8.46% | 26.77% | 25.45% |
| France (EWQ) | -0.62% | -0.55% | 2.47% | 4.54% | 27.85% | 20.26% |
| Germany (EWG) | -1.08% | -0.77% | -0.10% | -1.48% | 31.84% | 27.59% |
| Hong Kong (EWH) | +0.27% | 2.48% | 2.05% | 3.54% | 34.50% | 26.56% |
| Japan (EWJ) | -0.83% | 0.88% | 3.38% | 12.66% | 25.04% | 24.66% |
| Netherlands (EWN) | +0.60% | 0.77% | 2.94% | 12.67% | 35.22% | 26.76% |
| South Korea (EWY) | +2.59% | 5.27% | 20.76% | 31.85% | 90.41% | 60.91% |
| Switzerland (EWL) | -0.91% | -2.56% | 2.00% | 2.85% | 23.41% | 12.74% |
| U.K. (EWU) | -0.21% | 0.12% | 2.88% | 6.04% | 28.93% | 23.34% |
Emerging Markets
Emerging markets fared better than their developed counterparts, with the Emerging (EEM) benchmark gaining +0.57%. Gains were led by Indonesia (EIDO) (+1.50%) and Brazil (EWZ) (+0.84%), while South Africa (EZA) lagged, down -0.74%.
| Country (Ticker) | 1-Day % Change | WTD | 1 Month | 3 Month | YTD | 1 Year |
|---|---|---|---|---|---|---|
| Emerging (EEM) | +0.57% | 1.65% | 5.30% | 13.84% | 35.21% | 27.28% |
| Brazil (EWZ) | +0.84% | 2.30% | 0.61% | 16.52% | 41.04% | 17.66% |
| China (MCHI) | +0.57% | 1.52% | -0.06% | 11.83% | 41.12% | 34.56% |
| India (INDA) | +0.13% | 0.18% | 4.70% | 2.09% | 3.74% | -0.42% |
| Indonesia (EIDO) | +1.50% | 0.11% | 3.56% | 2.92% | 1.80% | -11.29% |
| Malaysia (EWM) | -0.38% | 0.86% | 0.50% | 7.78% | 7.87% | 7.74% |
| Mexico (EWW) | +0.49% | 3.15% | -0.04% | 10.67% | 46.63% | 36.51% |
| South Africa (EZA) | -0.74% | -0.66% | 2.10% | 18.72% | 56.32% | 37.63% |
| Taiwan (EWT) | +0.06% | 0.98% | 6.42% | 14.52% | 29.69% | 25.25% |
| Thailand (THD) | -0.50% | 0.08% | 2.16% | 6.54% | 3.40% | -3.82% |
Fixed Income
The fixed income market sold off broadly following the Fed’s hawkish pause. The equity-linked Convertible (CWB) was the lone gainer at +0.49%. Longer-duration assets saw the most pain, with Government Long (SPTL) falling -0.98% as today’s strong GDP data further dampens hopes for aggressive rate cuts.
| Category (Ticker) | 1 Day | WTD | 1 Month | 3 Month | YTD | 1 Year |
|---|---|---|---|---|---|---|
| Convertible (CWB) | +0.49% | 0.87% | 3.60% | 11.18% | 21.84% | 23.24% |
| Taxable Ultrashort (BIL) | +0.03% | 0.04% | 0.33% | 1.06% | 3.48% | 4.31% |
| Municipal Short (SUB) | -0.04% | -0.05% | -0.09% | 0.37% | 2.72% | 3.24% |
| Bank Loans (BKLN) | -0.05% | 0.24% | 0.53% | 1.58% | 5.24% | 6.81% |
| Municipal High Yield (HYD) | -0.14% | -0.10% | 0.80% | 5.06% | 1.74% | 2.23% |
| Municipal Intermediate (MUB) | -0.14% | -0.19% | 1.19% | 4.24% | 3.24% | 3.63% |
| Municipal Long (MLN) | -0.17% | -0.28% | 1.56% | 7.35% | 1.83% | 2.72% |
| Government Short (SPTS) | -0.24% | -0.24% | 0.32% | 1.38% | 4.14% | 4.79% |
| Taxable Short-Term (BSV) | -0.24% | -0.24% | 0.44% | 1.62% | 5.17% | 5.46% |
| Taxable Multisector (PYLD) | -0.26% | 0.00% | 1.05% | 3.43% | 8.60% | 9.44% |
| International USD (BNDX) | -0.28% | -0.04% | 0.84% | 1.45% | 3.40% | 3.98% |
| Taxable High Yield (HYG) | -0.31% | -0.16% | 0.14% | 2.03% | 7.46% | 7.89% |
| Corporate (SPIB) | -0.35% | -0.26% | 0.60% | 2.38% | 7.20% | 7.11% |
| Taxable Core Enhanced (IUSB) | -0.40% | -0.23% | 0.92% | 2.98% | 7.25% | 6.66% |
| Emerging (EMLC) | -0.43% | 0.04% | 0.61% | 3.39% | 15.72% | 12.58% |
| Preferred Stock (PFF) | -0.44% | -0.38% | -0.30% | 2.49% | 5.35% | 2.27% |
| Emerging USD (EMB) | -0.44% | 0.32% | 1.69% | 5.20% | 12.85% | 11.57% |
| Taxable Core (AGG) | -0.47% | -0.35% | 0.85% | 2.97% | 7.11% | 6.34% |
| Government Intermediate (SPTI) | -0.48% | -0.45% | 0.55% | 2.12% | 6.89% | 6.16% |
| International (IGOV) | -0.49% | -0.14% | -0.26% | 1.12% | 10.49% | 6.43% |
| Inflation Protected (TIP) | -0.53% | -0.47% | 0.35% | 1.86% | 7.26% | 6.03% |
| Mortgage Backed (MBS) | -0.67% | -0.47% | 0.78% | 3.44% | 7.64% | 7.06% |
| Taxable Long Term (BLV) | -0.85% | -0.40% | 1.70% | 5.27% | 8.88% | 5.77% |
| Government Long (SPTL) | -0.98% | -0.44% | 1.78% | 5.11% | 7.83% | 4.29% |
Commodities
Commodities were mixed, with Broad Commodities (DJP) up +0.36%. Silver (SLV) was a bright spot, gaining +1.24%, while Gold (GLD) slipped -0.38% on the Fed’s commentary. Natural Gas (UNG) continued its slide, losing another -1.05%.
| Commodity (Ticker) | 1-Day % Change | WTD | 1 Month | 3 Month | YTD | 1 Year |
|---|---|---|---|---|---|---|
| Broad Commodities (DJP) | +0.36% | -0.94% | 1.79% | 3.58% | 12.43% | 13.61% |
| Energy (DBE) | +1.09% | -0.58% | -0.97% | -5.29% | 2.21% | 9.64% |
| WTI Crude Oil (USO) | +0.57% | -1.89% | -3.74% | -10.03% | -4.96% | 3.07% |
| Brent Crude Oil (BNO) | +0.88% | -1.53% | -3.31% | -8.21% | -2.05% | 4.17% |
| Natural Gas (UNG) | -1.05% | -5.86% | -4.76% | -12.22% | -27.36% | -8.95% |
| Gasoline (UGA) | +1.85% | 1.29% | 0.91% | 0.72% | 3.62% | 10.09% |
| Precious Metals (DBP) | -0.39% | -3.69% | 2.27% | 18.71% | 49.04% | 39.04% |
| Gold (GLD) | -0.38% | -3.85% | 2.99% | 18.53% | 49.92% | 41.75% |
| Silver (SLV) | +1.24% | -1.73% | 1.72% | 24.73% | 64.19% | 37.72% |
| Platinum (PPLT) | +0.39% | -0.70% | -0.36% | 14.00% | 74.88% | 51.32% |
| Palladium (PALL) | +0.02% | -1.82% | 10.89% | 11.70% | 53.15% | 15.23% |
| Industrial Metals (DBB) | -0.05% | 0.93% | 5.98% | 11.68% | 15.65% | 9.99% |
| Copper (CPER) | +0.66% | 1.93% | 6.31% | -8.00% | 27.98% | 17.26% |
| Agriculture (DBA) | +0.61% | -1.02% | -2.19% | 1.19% | -1.02% | 8.18% |
| Corn (CORN) | +0.04% | 1.71% | 1.63% | 4.17% | -4.55% | 0.09% |
| Soybeans (SOYB) | -0.22% | 2.45% | 5.17% | 5.88% | 6.15% | 7.65% |
| Wheat (WEAT) | 0.00% | 3.41% | 1.43% | -3.19% | -11.83% | -17.15% |
| Sugar (CANE) | 0.00% | -2.41% | -11.17% | -15.38% | -18.64% | -27.34% |
Cryptocurrency
Digital assets saw a broad sell-off, with Ethereum (ETHA) leading the way down at -3.50%, followed by Bitcoin (IBIT) at -2.70% as the risk-off tone from the Fed’s commentary impacted the space.
| Asset (Ticker) | 1-Day % Change | WTD | 1 Month | 3 Month | YTD | 1 Year |
|---|---|---|---|---|---|---|
| Ethereum (ETHA) | -3.50% | -0.64% | -6.94% | 3.62% | 16.73% | 48.27% |
| Bitcoin (IBIT) | -2.70% | -0.13% | -3.42% | -5.94% | 18.28% | 51.83% |
| Multi-Coin (NCIQ) | -2.62% | 0.06% | -4.97% | -5.70% | ||
| Solana (SOLZ) | -1.45% | -0.43% | -11.17% | 1.70% |
What to Watch Today
Investors are digesting this morning’s key economic release, the Advance Q3 GDP report. The U.S. economy grew at a 3.8% annualized pace, significantly beating the 3.2% consensus forecast. This surprisingly strong data, driven by resilient consumer spending, reinforces the “higher for longer” interest rate narrative that the Federal Reserve signaled yesterday. This will likely put further upward pressure on Treasury yields and create headwinds for rate-sensitive sectors like Real Estate and Utilities, while potentially favoring cyclical sectors that benefit from robust economic activity.
For a deeper dive into the data, access today’s full Daily ETF Data Pack.
This material is for informational purposes only and should not be considered investment advice. All investments, including ETFs, involve risk, including the possible loss of principal. Investors should consider their investment objectives, risks, charges, and expenses carefully before investing.
This analysis was developed by the team at ETF Action. We leverage advanced AI tools to assist in the drafting and refinement of our content, based on our expert prompts, direction, and final review.
